Let me say that again. I will probably be able to pay my student loans off in 30 years or so. I have an LL.M. in tax and am hustling for every dime I can get.
The lawyers you're working with in a transaction like this are doubtless badasses. They work for a big firm, in a tall shiny building, with sexy secretaries and bookish paralegals. They have continuously updated libraries, and conference rooms, and expensive subscriptions to LexisNexis and Westlaw. They wear $1000 suits and fly to meetings on a private jet. These things cost money... lots of it.
As a VC investing in startups, you know you have the choice in which companies you trust. The same can be said for attorneys. If you choose flash over substance, you're going to end up paying big bucks every time.
Should it cost $17,000 for a transaction that probably didn't take more than a few hours of an attorney's time? Nope. Whose fault is it that it did? As with any product, the lawyers you've selected are charging what the market will bear and billing you what they know you'll pay.
Spend some time finding an attorney that you can trust that cares more about doing quality work than a fancy office. In NYC, there are some really amazing LL.M. programs - find a recent grad from a tax program. They're certainly able to put together a 'standard' deal and incorporation, and are better equipped to help a startup plan intelligently anyway. They'd be thrilled to have the business and the experience, and you'd get much better service at a reasonable price.
And if you ever decide to invest in an Indiana company.... look me up.